What is Wave Stop? Wave Stop is AquaFunded’s risk management system designed to protect traders from excessive losses. Our data shows that exceeding the Maximum Daily Drawdown is the leading cause of account breaches, with over 73% of all breaches happening due to poor risk control. The most successful traders are those who cut losses quickly and let their winning trades run. Wave Stop enforces proper risk management to help traders maintain consistent profitability.

How does Wave Stop work? Wave Stop applies to Funded Accounts only. If your open trades reach a 2% loss of your account balance, Wave Stop will, in most cases, automatically close all open trades across all symbols. This is a soft breach, meaning you can continue trading immediately without further restrictions.

Example: If you have a $100,000 balance and three open trades, and your combined open PnL hits -$2,000 (2%), Wave Stop will automatically close all your trades to prevent further drawdowns. You can continue trading as usual afterward.

Why does AquaFunded have Wave Stop? Wave Stop helps prevent traders from blowing their funded accounts by reinforcing risk discipline. By managing risk properly, traders increase their long-term profitability and maintain consistency.

What happens if I trigger Wave Stop multiple times? Wave Stop is designed to guide traders toward better risk management while allowing some flexibility. However, repeated breaches come with increasing consequences:

1st breach – No penalty.

2nd breach – No penalty.

3rd breach – Profit split reduced to 50%.

4th breach – Account is breached. This structure encourages traders to improve their risk control while keeping their funded accounts secure.

Can I keep trading after Wave Stop is triggered?

Yes! Wave Stop does not ban you from trading. It simply closes all your open trades when the loss threshold is met. You can resume trading immediately.

Where does Wave Stop apply?

Wave Stop applies on all funded accounts excluding instant funding accounts.